*\J\n$ti\\\tiQ de Direccióny Organización de Empresa.Cátedra de PolíticoEconómica de la Empresa?SOf O í . » , SANTIAGO G*JC¡* ECHB/ARWA

Num. 2° TRIMESTRE

THE ROLE OF HUMAN RESOURCESMANAGEMENT IN THE NEW

BUSINESS DESIGNSProblematic of its Internationalization

Prof. Dr. Dr Santiago García EchevarríaPro/, Dr. María Teresa del Val Nuñez

Universidad de Alcalá de Henares

UNIVERSIDAD MM DE AIJCALÍ

Doc l-A-Ext2/95

CONFERENCIAS Y TRABAJOS DE INVESTIGACIÓN ^ vDEL INSTITUTO DE DIRECCIÓN Y ORGANIZACIÓN \DE EMPRESAS I Núm. T TrimestreDDJECTOR : Prof. Dr. SANTIAGO GARCÍA ECHEVARRÍA

,,,Hí?.!Y.ífíS.l'?*R.PE ALCALÁ

5900907432

THE ROLE OF HUMAN RESOURCES MANAGEMENTm THE NEW BUSINESS DESIGNS

Problematic of its Internationalization

Prof. Dr. Santiago García EchevarríaProf. Dr. María Teresa del Val Núñez

Universidad de Alcalá de Henares

Alcalá de Henares, 1995

Consejo de Redacción:

Santiago García Echevarría (director)María Teresa del Val

Joseba Araño

Secretaria y Administración :

Elisa Moscoso

© Prof. Dr. Di. Santiago García Echevarría

Dirección del I.D.O.E. : Plaza de la Victoria, 328802 - Alcalá de Henares.

Teléfono : 885.42.00Fax : 885.42.00

EDITA:I.D.O.E. UNIVERSIDAD DE ALCALÁ

I.S.B.N.:84 -8187-047-1Depósito Legal: M- 4115 -1996

Imprime: «CAÍ UFKODUCCIONBS, U .P° de La Estación, 7 - 28807 Alcalá de Henares

INDEX

Page

i. nrntoDucnoN 5

//. THE MANAGERIAL FRAMEWORK OF SPANISH

FIRMS' HR EVOLÜTION.... 10

III. THE HR MANAGERS IN THE COMPANIES 20

IV. WHICH ROLE PLAYS THE HR-DEPARTMENT INTHE BUSINESS ORGANIZATION? 31

V. HR MANAGERS1 CHANGE PROCESS IN THE

SPANISH FIRMS 38

VI. CONCLUSIONS 45

VII. REFERENCES 47

I. INTRODUCTION

Traditíonally, during many decades, the HR managcr, generally has

played a minor role within the firms' managemcnt. Among the most

prevailing reasons, we find:

* The strong public regulation, in those issues concerning with

the social and labour domains in the companies As a

consequence, a legal-oriented perspective has been developed

within those firms.

* The constancy and long persistence of technological and

organizative systems in corporations, has arisen an adminis-

trative oriented HR department. Thus, tbe domain of HR

administration, has undoubtedly been, the basic orientation of

this área.

The low market competence has obviously helped the related

administrative orientation.

* The companies' success key has not been identified in the

HR ground, but in the creation of efficient functional structu-

res. Human resources has been observed as minor elemente

in business success processes.

* The Spanish economy has traditionally suffered a severe

public intervention. In the last 40 years we may appreciate

this great difficulty in the markets' opening, as a conse-

quence of a strongly developed shared valué system, influen-

ced by the state's interference, as the regulatory body of

economic and social issues.

These points have resulted in:

* A "legal" dominance

• A great resistance in behaviours, as a consequence of the lack

of knowledge and experience about competitive and open

markets, and the new corporate designs.

• Trade unions have not been capable to assume the new

competitive realm and the difficulties to adapt to them.

* The lack of confidence on the human being, coming as a

result of the minor role performed by the HR.

In this moment, the Spanish economy is facing a signifícant change,

not occurred until the last years. It is precisely in this moment when a

relevant institutional revolution is taking place; which implies for the fírsí

time, the acceptance of an open and competitive economy. Thus, íhose

institutions need to develop new flexibility -oriented methods and step

up economic and social processes, as well as, institutional and individual

behaviouxs.

So we can observe how increasing competence characterises,

increasingly, companies' evolution. The answer to this constant change

reality in the business concept needs a:

* Growing dynamics in technological innovation

* Increasing oollaboration schemes with other companies,

creating new outsourcing channels.

* Increasing europeisatíon, when not globalization of business

activities

* A greater link between the HR managers and the business

activity

The implementation of all these topics require a cooperatíve

perception of the company, focused in the reduction of coordination costs

through a coiporate culture development. Corporate culture should

coordínate more efficiently company's inwards, together with creating a

corporate image to reduce coordination costs with the environment. Both

cases deal with the creación of capital confianza.

As a consequence, a company should be understood as a valué set,

that will permit:

* To define the institutional dimensión through Corporate

Philosophy.

* HR strengths' knowledge through information disposal about

the corporate culture.

8

Just, after the conect defínition of both criteria, we can cstablish

those guidelines defining delegation and decentralisation áreas with lower

coordination costs. These valúes' management, doubtlessly is becoming

one of the main function of HR managers.

VALUÉ SYSTEM

: :CORPORATIVE:PHKXJSOPHV::

: COBPORATIVE:::::CULTORE ::

LEGItlMATIONOFBEHAVKHJB8

HnrnmoNM.

MDMDUALBEtWflOURS

: cHtttrtt:

1NTEHNAL STRUCTURE

' managbia •yatonw

' organlsatln «trudura*

• InionncUon/oomnunicattón

' • t e .

BJVIRONMENT

>socMy

•mariwl'•le.

Figure 1

Only through the defined corporate design, we will be able to pro-

ceed efficiently when defining:

* Company's management structures

* Company's corporate marketing

That is why, for the fírst time in the Spanish history, managemeot

is considered as a key strategic factor to assure a company's competiti-

vity, starting to give primacy to HR management.

H. THE MANAGER1AL FRAMEWORK OF

SPANISH FIRMS' HR EVOLUTION

Today's dominant framcwork in the HR evolution in Spanish fírms

is defíned by the following parameters:

* A Iow productivity

* A Iow corporate integration, and consequently, large raotíva-

tional difficulties.

* The necessity to a HR orientation, more than to functions.

* An inadequate rewarding system

* Very hostile industrial relations.

10

HUMAN RESOURCESMOTIVATION OF EMPLOYEES

80

40

20

1 2 S 4 5 « 7 16 17 1» 18 20 21 22 23

Figure 2

HUMAN RESOURCESLABOUR INCENTIVES

1 2 3 4 5 8 7 18 17 18 19 20 21 22 23

Figure 3

11

We may appreciate, as a ref erence, how the inteinational compari-

son (1) shows not a good position of the Spanish corporation in terms of

human behaviours. Therefore, motivation, rewarding structure, industrial

relations, i.e., are among the last places within the industrial relations

context.

HUMAN RESOURCESINDUSTRIAL RELATIONS

100

80

80

40

20

0

•i' / <

/

ti//

1 2 9 4 S 6 7 1» 17 1» 1» 20 21 22 23

Figure 4

We may find a logic answer to this issue if we observe the set of

valúes applying to the human being in the Spanish and Germán corporate

1. The World Competitiveness Repon 1992, ed. World Economic Fonun, 1992

12

cultures®. We may appreciate that the Germán corporate culture is

strongly aimed towards the human being ín their integrative designs, is

not the same in Spanish corporate culture, with an instrumental dominan-

ce.

VALÚES OF CORPORAT1VE CULTURESOJBESTONSABaJTY CT

THEEMn.OVEE

TEAM.WOAKING

na EMPIOYZE IN THEDECOICNM. mesas

WCME MTOMUnON <aOUTDECSION PROCE3S

StUREAUSATlON MTHE JO*

ntEEDOII TO OETEHMMEJOBS" CONrEMTt

HUMMOUTION OF WORMNa

OMAMZAHON H THEwanKN6 rutes

1HEEMK0VEEMTHECOMP«WTS»tSUUIS0

: ...:..y.

: \/

/

\

A\

¿:

\A..S

1

\

/

9

|

1

I1

1

1

SO 100

Figure 5

2. del Val Núñez, M.T., Cultura Empresarial y estrategia de la empresa en España. Surealidad actual y su diseño del cambio. Ediciones Rialp, Madrid 1994

13

MEAN COSTS BY WORKED HOURPersonnel direct and indirect costa

WW(taDM)

D Direct coste •indlrect Coste

LABOUR COSTS / SALES VOLUME

<5«<7<S»707:(7Z7374757«777I7»M«It2«3MS5H87WS»»9»l»2

— SÍAD* — GERMANY

Figure 6

14

As a consequence, Spanish labour unit costs are as expensive as

those in the Federal Germán Republic*3'. Although, the comparison

between the total labour costs in the two countries, shows how Spain

represents, just a 60% of the Germán total labour cost.

The same fact could be applied to business profitability in cash-

flow terms. This ratio shows how tbe Spanish firms are far from the

mínimum return to answer properly to change processes both in the

technological field as in the opening of the economies and markets.

At the same time, social pressure is expected to grow sharply in the

coming years, as a consequence of the lower incomes per head compared

with our partners in Central Europe. Spain suffers, as well, a low disposal

of social benefits within the European Union.

The adding up of low rewarding together with a scarce body of

social benefits, carry up a situación marked with conflicts and antagonism

in the HR área, that arise necessarily a new orientation. Thus, companies

have to adopt a greater protagonism designing their own HR integration

processes, as well as a greater participation in the design of their own

social benefits in order to achieve:

* A greater efficiency in the Spanish social system

3. Véase Deutsche Bundesbank, Monatsberichte, de diferentes años y Banco de España,Central de Balances, de diferentes años.

15

CASH FLOW / NET ASSETS

>••• : ; ; ; ; ; ; ; «

«3«<7MC»7971727J747S7<7T7S7»MSlt2S3MC5MS7MS»»9M»2

—SPADf — GERMANY

figure 7

* Finns' capability to identify and intégrate the human being

in their institutions

Which implies, as well, a new institutional design for the Spanish

tiade unionism.

16

Thus, human resources and companies face the following trends:

* The necessity to adapt to institutíonal change processes, and,

as a consequence, improve significantly productívity levéis.

C o m p a n y ' s

compet i t ivi ty

acceptance, in

those fields

related to its

own designs and

to its environ-

ments.

The necessity to

deregulate the

social and labour

legislation, in

order to achieve

enough flexibi-

lity .

| ADAPTING DWFICULTIES j

i

•

DBitANDORGANIZATIONAL CHANGí

*WmCHKEQVlSES

DJSTTTünONAL DESIGN

— — ' — ~ ~ " ' - - •

CORPORATIVEPROIECT

DISCOVBK BMSTINOVALÚES

CORPORATE CULTOSE

ACCOHDMOTOTtaMBUSINESS STRATBGY DESIGN

1AccoxDmGmrr

ORGANIZATIONAL DESKJN

iD4PLEMENTATION OF

ORGANIZATIONAL CHANCE

figure 8

17

* The necessity of a radical behavioural change both in the

employees as in the company and its managers.

* The necessity of an institutional change in society

And, as we will perceive from the empirical research's resulte, the

Spanish HR manager is conscious about the need to intégrate the emplo-

yees in the corporate project, as the key point in the new corporate

designs. So the Spanish manager face the problem of how to implement

this changing piocess.

From the companies' point of view, the new institutional and

organizative designs are based in the human being. Logistics, Total

Quality Management, or Lean Management require, basically, a complete

personnel integration, and a special attention to employees in the way

they implement and develop their activity. Achieving, as a consequence,

responsibility and Qexibility in the adapting processes. The human beings

are the key in business processes, and this requirements have to be

fiilfilled.

Thus, we consider, that the existing organizative designs, based in

a taylorist work división, and a Maxweberist sociologic power sharing,

which créate rigid structures, should be modifíed. We should pass to a

new organizative design resting in the employees' valué system and in

the great capacity of modern information technology to determine

18

(WROCRAT1C DESIGN>-

OrientaO»lo orpurfntív»

«fracture

ORGAIflZATTVE DYNAMICS

- i -Orientatioa '

lo an opea cnvironmcnttbraogkHR

Proct» dtsignscconüng to dtuaúans

Figure 9

business processes and their permanent change. In this point, we should

introduce the role of the HR manager in the company. Therefore, we wül

analyse first, "who" is the HR manager, as well as the role of the HR

department in Spain, comparing them to those in the Germán, British and

Slovack cultures.

19

m. THE HR MANAGERS Di THE COMPANIES

The HR manager in the Spanish company is a person dominantly

in his fortíes or fifties. An 18% are older than fifty years, which

expresses the given generatíonal change in Spanish companies in the last

4 years, as just a 9% are less than thirty years. This means that the HR

manager in the Spanish company taces, supposedly, a fifteen years long

professional career, as a 73% of the studied HR managers are between

their thirties and fífties.

At the same time, the actual HR managers have dealt with their

posituras during more than five years (47,5%), and, near a quarter of

them have entered their poste in the last three to five years. Similarly, tbe

Germán HR managers stand for a long time at their posts, while in the

UK and the Slovak Republic the rotation level is much greater.

As we may observe in Figure 12, the HR manager is Spain has,

overwhelmingly, a college degree (94,1%), a far larger figure than in

Germany (83,5%), ÜK (73,5%) and the Slovak Republic (76%). This

process have increased in the last years. At the same time, we perceive

how the lawyers domínate among the Spanish HR managers (32% of

tbem), with lower figures in the ÜK (2,4%), in the Slovak Republic

20

• L E S S T H A N W Y E A R S Dat-SOYEARS DoLDER THAN SO YEARS

Figure 10

(10%), and in Germany (with a 14,4%). The lawyers' dominance in the

HR área, has always been and still is the main feature in this activity, as

this studies are still recommended by a (31,4%)

On the other hand, the economist plays a minor role in Spain with

just a 9,2%, against their crucial position in Germany (60,3%), as well

as in the UK (36,8%) and in the Slovak Republic (32,5%). This situation

derives from the lack of economic and business mentality in the HR área

21

HR-MANAGEMENT POSITION:LENGTH OF TIME

SPAIN

_ _ _ ^ ^ 20,*%

24,4%

7,a»

47,5%

B L £ S S 1HAN 1 YEM D i - 3 YEAR3 • » £ VEARS O M O R E THAN S YEARS

Figure 11

within the Spanish finns, against other countries' cultures. Human

Resources are not treated from the economic perspective but from the

legal-administrative one.

The psychologists cover, as well, an important space in the HR

manager profíle, with a 12,4%, signifícantly a larger figure than in other

countries.

22

UNIVERSITY DEGREESPAIN

í «7.2!%

sovee a awcu BOCKMVU/ K T . CCLVUL

Figure 12

Thus, as a consequence, we may establish, that the HR managers'

degree background sets the principies in that área in the Spanish

company, and is narrowly related to the working framework.

Another signifícant question about the potentials oí HR managers is the

one related with their piofessional career. As we may acknowledge in the

Spanish company a 73,5% of the HR managers have developed their potential

within the same HR department, and just a 26^5% of them come from other

business functions. It could be said, that the so-called chimney effect - HR

23

managers developed in theír own departments- dominates, more than in other

cultures.

PRACTICAL EXPERIENCE FOR HR-MANAGEMENT ROLES

SPAIN

START THE MANAGERICAL CAREER

INSDE THE HR-RJNCHON73.5%

Figure 13

Doubtlessly, Üás is a signifícant difference, in particular, with the

UK and the Slovak Republic, where just a 46% of the HR managers, are

feed within the HR department. More than half come from other

business activities. In Germany, two thirds of the HR managers are

developed professionally within the same HR departments and a third

come from other activities.

24

When the HR managers are asked about which career stage they

have achieved, we observe how a third of them believe they have already

THE OVERALL CAREER

SPAIN

33,3*

IN OTHER FUNCTION17%

0REACHED THE CEIUNG IN Q A N INTERMEDIARY 3TEP IN THETHE PROFESIONAL CAREER PROFESIONAL CAREER

•cunee « amoA eowMmw w T, BEL VML

Figure 14

reached their career ceiling, while two thirds of them consider themselves

still in a developing stage of their professional career. Besides, it is

widely extended (8396) among those HR managers the desire to continué

in the Human Resource área, as their career path. Just a 17% of them

would like to develop their potential in other business áreas or functions.

According to these figures, we may observe how HR managers do not

25

consider the exisíence of managing skills they could use in other

business units or functíons. Which goes against the belief of other

functional managers.

The low international business training and experience standards

among HR managers in the different countries arise as a serious issue to

be analysed. Human Resources, are probably the área with the lowest

international development in their management, creating important

problems in the companies' development. Localism in the HR área

derives from the legal - orientation given to HR policies, together with

an inward cultural visión more than orienting to a business and economic

framework. The explained situation leads to a lack of international

expansión of HR departments' economic and social practices. Thus,

companies loóse very significant potentials.

We may appreciate how just a 16,1% of HR managers have any

practical experience abroad. The Spanish situation in this ground is

similar to the one in Germany, while a third of British and Slovak HR

managers have acquired some international experience.

The HR managers' internationalisatíon déficit, in our opinión, arise

as a review issue when discussing the managing development.

26

PRACTICAL EXPERIENCE FOR HR-MANAGEMENT ROLES

SPAIN

JOB ASSIGNMENT ABROAD

Figure 15

Before analysing the Spanish HR managers' valúes, we should

outline how a 71% of them stand at their companies' Board of Directors.

Doubtlessly, this is a surprising trend if we compare with the 15% of HR

managers standing at the Germán Vorstands, while in the UK a 30%, and

in the Slovak Republic a 19% stand at the board of directors. However,

two constraints should be analysed to understand properly the HR

Managers' real location within companies:

27

First, Board of Directors is not the same as the Germán

Vorstand, but more an inwards-oriented institution.

POSIT1ON IN THE ORGANIZATIONAL HIERARCHYOF YOUR CURRENT EMPLOYER

SPAIN

70,8*

•BOATO OF DIRECTORS Ol£VEL2 QLEVEL3 D L E V B . 4

Figure 16

* The breakthrough to top responsibility levéis have occurred

in the last fast-changing five years. The reason lays in the

downsizing trend, and a perceptiveness of the necessity to

widen the HR importance in the business process manage-

ment.

28

In the present, from the valué profíle defining the Spanish HR

managers we may outline three main valúes:

* Bargaining skills

* Communicational skills

* -,;-. Attachment to company

These set valúes, maintain their overwhelming acceptance in the

future, with a clear affinity to them by the HR managers in the following

grounds:

* Bargaining skills

* Motivational skills

* Communicational skills

Besides, in a future, another group of highly considered valúes,

related to organisational and business issues, appear as relevant:

* Strategic visión

* Attachment to company

* Delegation capacity

* Flexibiiity

* Global Vision

* Risk assumption

29

VALÚES PROFILE OF HR-HEAD

SPAIN

BAROAIMNS 8WLUS;M0HVATI0NM.8N1ISÍ

COMMUMCATONAL SOLLSÉSTHATEQIC VlStONt

IDENT1HCATION WITH COMPANYElDELEQATION CAMCITYF?

FLBOBlUTYgGLOBAL VI SON g

R18K A S S U M P T I O N E

RJIUREMSIONE?

BCONOMC yENTALlTYE*8PECtMJ8T IN LABOUR AfRMKESg

OOOO ADMMSTRATOR

MoviurvlAUIORITY

•PRESENT BFUTURE

Figure 17

As we may appreciate, all these valúes conespond, basically, to the

operative business way of thinking. The gap between the present and the

fiíture set of valúes, is highly significant in some cases, which become a

key concern to those HR managers. We find, as well, a discouraging set

of valúes in the obtained results, corresponding to very low figures in:

* Economic mentality

• Mobüity

30

There is a clear declining valué, which is the administrative role of

HR managers. Administration is considerad not to be tbeir function, and

at the same time, the labour specialist role start to loóse weight among

them.

Summarising, we appreciate a clear trend towards a greatei

importance of the business management issues among HR managers, and

a changing pattern léaving aside the traditional administrative-legal

perspective.

IV. WHICH ROLE PLAYS THE HR-DEPARTMENT

JN THE BUSINESS ORGANISATION?

A 95% of the Spanish companies hold a HR department, showing

similar figures as in the other researched countries. Thus, the need to

research which role are playing those departments. We may observe the

lack of great differences among the HR organizatíve structures in the four

countries, as the four maintain highly centralised functions together with

decentralised ones.

The most centralised ones would be the following:

* HR planning

* Reward systems

31

DECISIÓN MAKING IN HR-FUNCTIONGRADE OF CENTRALISATION

SPAIN

COMPENSATION&BENEFITS

MANAGEMENT DEVELOPMENT

HR-PLANNING

EMPLOYEE RELAT1ONS

RECRUITMENT

TRAINING

100 80 80 40 20 0 20 40 80 80 100

DTOTAL OEseamMusEt) QMEOIUM •TOT/NL CENTRAUSED BCENTFWJSED

with:

Figure 18

* Management development

Decentralisation gets a greater weight in those áreas conceraing

* Recruitment

* Relationship with employees

32

DECISIÓN MAKING iN HR-FUNCTIONIEVEL OT OECISIOM MAK1NQ

8PAIN

On the other hand, we fínd greater cultural differences in the

situatíon of HR departments' decisión levéis. Generally, we could affirm

that the United Kingdom reaches the greatest level of stiategic oriented

decisions. The greatest

differences rest in the HR

planning and in those

issues concerning with

management development

policy.

Noticeably, we

should remark how a

country like Germany

carry out administrative

functions rather than stra-

tegic ones in the personnel

recruitment área.

We could affirm that

decisión levéis in:

HR-FLANMM3

RECRUTMENT

TRNMNG

94PLOYEE RELATKWS

"SKTSS

Figure 19

* Training

* Reward systems

* Industrial relations

33

are strategically oriented at a 50%, in the four countries.

Equally, we have considered the functions covered until now by the

HR departments in Spain. The HR heads take upon themselves the

following basic functions:

* Recruitment and selection

* Training and personnel development

* Personnel administration

Playing a minor role the following tasks:

* HR planning

* Consulting services

* Workplace evaluations

* Rewaid systems

Thus, we may appreciate how the traditional task of HR de-

partments have been more administrative oriented than business oriented.

However, the HR management is conscious about the need of a

mutative change in the role of HR departments. The traditional adminis-

trative and control-oriented centre should be neglected and there should

34

be a change towards a consulting centre, helping to design corporate

strategy, together wíth other departments.

HR DEPARTMENT'S TASKS

SPAIN

TRAIN1NQ ANO OEVOLPMENT-p:

HRPLANNNQ-

RBWAROING SYSTEMS-

RECRUTTMENT/SELECT1ON-::::::

CONSUJANCY SBMCES-tCONT1NOUS IMPROVEMENT

JOB VALUATIONS

JOB OESCRIPTK3N

PERSONNEL AOMMSTBATOn

TALENT DISCOVBtY

ABSENTBSM AND ROTATION

SOCIAL SERVICES

TIME SCHEOUUNQ

CONTROL OF TIME Ti

QPRESENT • F U T U R E

100

•ouve k 0/mnBOKjMnMttT. c

Figure 20

HR heads consider as their main ñinctions in the future, the

following:

Training and development 89,8%

HR planning 85,6%

Reward systems 75,7%

Recruitment and selection 75,0%

35

HR beads confer low future relevance, to the traditional functions

in this área, as:

* Administration

* Workplace descriptíon

Also, HR beads endow a lesser role in a future to the following

functions:

* Discover talents

* Deal with absenteeism and rotation

* Social benefits

* Controlling issues

The given clarifying trend towards corporate management áreas

dropping the traditional one remains, doubtlessly, as HR heads' main

future mission.

The basic problem is to discover whether the HR heads and their

departments have already achieved enough capabilities and attitudes to

deal with the explained developments.

36

CAPABILITIES AND ATTRIBUTES OF YOUR HR STAFF

SPAIN

ANTtCIPATES CHANOES- - :

HB VISON OF FUTURE- tv

COMPUTER LrrERA'TE

EXPEHIENCE KEY BUSINES8-f::

FOREING LANGtMOE CAMBIUTY-

UNE MANAGEM6NT EXPEniENCE"H

INTERNATIONAL EXPERIENCE+

0 20 40 60

•PRESENT • FUTURE

unanutu » nmnn* imtwamKKMZ : a OMOA ffCIgWWM / W1.0B. VM.M/VT.

MB emt

Figure 21

So HR heads believe that in a future, the required skñls and

attitudes ín their departments' employees should be, dominantly, the

following:

Anticípate changes

Future visión in HR managers

Knowledge in many HR functions

Line managers' training as a key function

37

And the following know how appear with a secondary relevance

* International experience

* Knowledge specialisation in few functions

* Benchmarking practices

The Spanish situation is similar to the one in the other researched

countries, United Kingdom, Geimany and the Slovak Republic. When

comparing the present and futuie profíles, we may deduce the huge

changing requirements. This process supposes a mutative change. The

great challenge rests in the way to implement this change process, one of

the main targets in this research.

V. HR MANAGERS* CHANGE PROCESS

IN THE SPANISH FIRMS

The coming chapter will analyse the way the HR Head may follow

to adapt himself to new management requirements in open and competi-

tíve economies. Besides, we will consider how the HR Heads and their

departments are affected by the change dynamics.

The HR manager in Spain thinks that the change process should be

brought through:

38

* Much stronger tíes with the corporate

strategy 91,8%

* Take part actively in company's

business 85,8%

* Develop with a greater intensity

Communications with other business

áreas. 82,2%

These trends confirm the orientation to a corporate managerism in

human resource disposal, more than a mere administrative.

In a second place, but with significant figures, the HR manager

considers he may assume his challenge through:

* Improving the co-ordination with other

business activities 77,9%

* A greater flexibility in HR function 75,5%

* A greater training capacity 75,2%

? A change in corporate culture 71,3%

The HR manager does not include among those important variables,

their change within the organisational level, or the assumption of new

functions.

39

CHANGING PROCESS OF HR MANAGER'S PROFILESPAIN

GETTING OEB>ER MVOUED INCOBPOBUTE ITBATEar -

GREATER PARDC1PHT1ON INBUMNESS ACTIVmEf

QHEATEB COMMNIGATION VHTH. .OTHEH BUSWESÍ ÁREAS

SETTER COOMXNMION VWIH OTHER .ADEAS

OREATEB REMBUTY * Hfl RJNCTION--

THROUGHTIMINMQ- -

THHOUOH CORPORATE CULTURECHAN6C

CHANGWa THE MPORTAMCE LEVEU .WTTHW THE ORaAWZKTION

1E8IGMNQ THBRWOHCMQ OONTENT» -

ATTENONQ OTHER FUNCTI0N8- -

100 8 0 8 0 4 0 2 0 0 20 40 80 80 100

DNEBAINEVUIUE nUWffiLEWMtCE l i — i M m y i » BlWOKTUMTVMJJE

Figure 22

The HR manager does not include araong those important variables,

their change within the organisational level, or the assumption of new

functíons.

But, as we have seen, the challenge does not rest only on the HR

heads, but also in the whole depaitment, as they look forward beconüng

a service offering depaitment, and not an administrative one. The whole

process could be sustained in four key aspects:

40

HR DEPARTMENT'S CHANGING PROCESS

SPAIN

OREATER PART1C1PAT1ON INCORPORATC BOARDS

AtUAHNS GREATER KSPONSAaUTY'

GREATCR KNOWIE00E OF BUSWESS.ACTIVmES

TEAMWORK-

THROUQH SPECinc TTVUNIHO-

MORE NEGOT1AT1ON CAFMOTY-

FURTHCR OEntRTMENTS -DECENTRAUZATION

INTEGRATINQ GENERAHONAL CHANOS

THROUOH A GENERAUST TRAIWNG-

ROTATKtM IN OTHER DEflARTMENT100 8 0 8 0 4 0 2 0 0 X 4 0 8 0 8 0 100

QNBamvEVAUjE •UMISEVANCE B E

Figure 23

* It should assume greater responsibilitíes 79,9%

* It should improve the knowledge about the business

áreas 75,5%

It should intensify team working 75,0

41

On the contraiy, we fínd a number of activities and variables íhat

are not identifíed as the engine of HR departments' changing processes,

as:

* Rotating through other departments

* A more generalist training career

* Integrating generational change

* Decentralising the departments

Once again, we may appreciate clearly, the HR managers' state of

mind, about their need to be integrated in the corporate's business, more

than in their traditional functions.

This changing process is considered to be developed, from two

main processes:

* A training policy, derived from the clear perception of a need

to improve the capabilities in HR departments' Staff, in order

to assume in a future the business oriented managing skills .

* Changes in corporate's organisation.

Generational change and the need to redefine the departments'

scope do not appear among the explained variables. The focus is oriented

42

towards the capability to achieve a great performance in open markets.

This fact implies a new Corporate Culture, a visión need. That is way

environment's knowledge is increasingly important, as well as, motiva-

tional and leadership theories. At the same time, instruments and tools

loóse some importance.

MAIN DiFFICULTIES IN CHANGING PROCESS

SPAIN

PERSONNEL FUGIDITIES-ACK OF CHANQING CONCKXJSNESS-

REStSTENCE IN MANAGEMENTLACK OF CHANQE PROJECT

LACK OF LEADERSHIP -LACK OF STAFFS TRA1NING SK1LL

LACK OF MANAGEMENT SNLL-LACK OF FUTURE WS»N -

DIFFlCUtTY TO RENEW Hfi"IABOUR RELATIONS-

ENVIRONMENTAL DIFFICULTIESAOAPT TO NEW ACDVITIES-

HK3H CDtFFICULTY TO OBTA

COMPANYMRESISTENCE IN BOATO-RK3H3 HEADOUARTERS-

100 80 SO 40 20 20 40 60 80 100

ONEQMTIVE VALUÉ D L O W RELeVANCE UEXCEJJENT VALUÉ EllMPORTANT VALUÉ

A BHBHmM IT ''•XL WL

íígure 24

43

Once inquired, how the HR managers think this change process

should be implemented, we should study where those managers perceive

the greatest difficulties are located in this move. The greatest ones are in:

* Personnel's stiffness

* The lack of a changing consciousness

* Management resistance

However, we find another set of valúes not so much assessed, as

lack of leadership, lack of a changing project, low capacity in the training

department Le. HR managers do not see, neither, as great obstacles

competitivity, business dimensión, resistance in the Board, environmental

difficulties or industrial relations.

Therefore, it is surprising once studied the Spanish firms' actual

situation, how the HR heads just define the given obstacles' profile,

which should strengthen the success chances compared with their actual

results. This hopefulness does not correspond with the actual parteras in

the Spanish companies' changing processes.

44

VL CONCLUSIONS

We may affirm that eveiy company is defined by the three success

factors:

* First, the institutional field, which includes the valué systems

that have to be managed.

* The economic field, including business strategy, that corres-

pond to the evaluation of environments and compames'

strengths and weaknesses.

* Organizative field, looking for adaptability to changing

processes.

These factors carry out three new basic orientations in HR

managers' corporate culture

* First, we need human-oriented organisations, in order to

enhance their integration and motivation, as a prior condition

to a flexible and quick change process; thus reducing econo-

mic costs and time consumption.

45

* A clear customer and supplier driven orientation, reducing

transactíon costs.

* Finally, we need a clear orientation to the constant develop-

ment of the institution.

So the proposal for a better HR management could be the follo-

wing:

* Increasingly, the HR corporate manager has to come near the

top corporate levéis, even being included and taking actívely

part in them.

* The functional and the corporate sphere should be clearly

divided within the HR área.

* HR management is becoming the key strategic tactor, both at

the design of cultural changes, as in the strategic and organi-

zative resolutions.

* HR managers should be more business-aligned, an more

separated from functions.

46

* The basic trend is towaids an increasing outsourdng orienta-

tion in HR functions, aiming economies of scale through the

collaboration with others.

* Differentíation remains more in HR corporate management,

than in the management of HR functions.

In the coming years, management processes will increase their

importance as the major role of HR managers. All the energies in HR

management, particularly those related to leadership, should be oriented

to institutional consolidation. This is the only reference offering external

and internal confidence to companies within an open and comperitive

context that is involved in huge uncertainties.

. REFERENCES

BANCO DE ESPAÑA: "Central de Balances" different years

DEUTSCHE BUNDESBANK: "Monatsberichte" different years

GARCÍA ECHEVARRÍA, Santiago (1991): "Management de RecursosHumanos y Sistemas de Información" in Working Paper (SerieAzul) Nr. 172, Madrid

GARCÍA ECHEVARRÍA, Santiago (1992): "El nuevo diseño empresarialespañol. Hacia una nueva Cultura y Estrategia Corporativa" inWorking Paper (Serie Azul) Nr. 190, Madrid

47

GARCÍA ECHEVARRÍA, Santiago (1994): Introducción a la Economíade la Empresa, Madrid

HÜCHTERMANN, Marión, LENSKE, Werner (1991): "Wettbewerbsfak-tor Untemehmenskultur" in Beitráge zur Gesellschafis- und Bil-dungspolitik, Nr. 168, Colonia

LATTMANN, Charles, GARCÍA ECHEVARRÍA, Santiago (1992):Management de los Recursos Humanos en la empresa, Madrid

MARR, Rainer, GARCÍA ECHEVARRÍA, Santiago (1984): Política depersonal en la empresa. Gestión de los Recursos Humanos. Madrid

ORDOÑEZ ORDOÑEZ, Miguel (Eds.) (1995): La nueva gestión de losRecursos Humanos, Madrid

The World Competitiveness Report - 1990. ed. World Economic Forum,1992.

VAL NÜÑEZ, M* Teresa del (1994): Cultura empresarial y estrategia dela empresa en España, Madrid

48